diff --git a/security/selinux/hooks.c b/security/selinux/hooks.c
index c90e865..b3c0647 100644
--- a/security/selinux/hooks.c
+++ b/security/selinux/hooks.c
@@ -12,8 +12,8 @@
  *  Copyright (C) 2003 Red Hat, Inc., James Morris <jmorris@redhat.com>
  *  Copyright (C) 2004-2005 Trusted Computer Solutions, Inc.
  *                          <dgoeddel@trustedcs.com>
- *  Copyright (C) 2006 Hewlett-Packard Development Company, L.P.
- *                     Paul Moore, <paul.moore@hp.com>
+ *  Copyright (C) 2006, 2007 Hewlett-Packard Development Company, L.P.
+ *                Paul Moore <paul.moore@hp.com>
  *  Copyright (C) 2007 Hitachi Software Engineering Co., Ltd.
  *                     Yuichi Nakamura <ynakam@hitachisoft.jp>
  *
@@ -3845,6 +3845,29 @@
 	return 0;
 }
 
+static int selinux_inet_sys_rcv_skb(int ifindex, char *addrp, u16 family,
+				    u32 peer_sid,
+				    struct avc_audit_data *ad)
+{
+	int err;
+	u32 if_sid;
+	u32 node_sid;
+
+	err = sel_netif_sid(ifindex, &if_sid);
+	if (err)
+		return err;
+	err = avc_has_perm(peer_sid, if_sid,
+			   SECCLASS_NETIF, NETIF__INGRESS, ad);
+	if (err)
+		return err;
+
+	err = sel_netnode_sid(addrp, family, &node_sid);
+	if (err)
+		return err;
+	return avc_has_perm(peer_sid, node_sid,
+			    SECCLASS_NODE, NODE__RECVFROM, ad);
+}
+
 static int selinux_sock_rcv_skb_iptables_compat(struct sock *sk,
 						struct sk_buff *skb,
 						struct avc_audit_data *ad,
@@ -3972,23 +3995,27 @@
 		return selinux_sock_rcv_skb_compat(sk, skb, &ad,
 						   family, addrp);
 
-	if (selinux_secmark_enabled()) {
-		err = avc_has_perm(sk_sid, skb->secmark, SECCLASS_PACKET,
-				   PACKET__RECV, &ad);
-		if (err)
-			return err;
-	}
-
 	if (netlbl_enabled() || selinux_xfrm_enabled()) {
 		u32 peer_sid;
 
 		err = selinux_skb_peerlbl_sid(skb, family, &peer_sid);
 		if (err)
 			return err;
+		err = selinux_inet_sys_rcv_skb(skb->iif, addrp, family,
+					       peer_sid, &ad);
+		if (err)
+			return err;
 		err = avc_has_perm(sk_sid, peer_sid, SECCLASS_PEER,
 				   PEER__RECV, &ad);
 	}
 
+	if (selinux_secmark_enabled()) {
+		err = avc_has_perm(sk_sid, skb->secmark, SECCLASS_PACKET,
+				   PACKET__RECV, &ad);
+		if (err)
+			return err;
+	}
+
 	return err;
 }
 
@@ -4201,151 +4228,255 @@
 
 #ifdef CONFIG_NETFILTER
 
-static int selinux_ip_postroute_last_compat(struct sock *sk,
-					    struct net_device *dev,
-					    struct avc_audit_data *ad,
-					    u16 family,
-					    char *addrp)
+static unsigned int selinux_ip_forward(struct sk_buff *skb, int ifindex,
+				       u16 family)
 {
-	int err = 0;
-	u32 netif_perm, node_perm, node_sid, if_sid, send_perm = 0;
-	struct socket *sock;
-	struct inode *inode;
-	struct inode_security_struct *isec;
+	char *addrp;
+	u32 peer_sid;
+	struct avc_audit_data ad;
+	u8 secmark_active;
+	u8 peerlbl_active;
 
-	sock = sk->sk_socket;
-	if (!sock)
-		goto out;
+	if (!selinux_policycap_netpeer)
+		return NF_ACCEPT;
 
-	inode = SOCK_INODE(sock);
-	if (!inode)
-		goto out;
+	secmark_active = selinux_secmark_enabled();
+	peerlbl_active = netlbl_enabled() || selinux_xfrm_enabled();
+	if (!secmark_active && !peerlbl_active)
+		return NF_ACCEPT;
 
-	isec = inode->i_security;
-	
-	err = sel_netif_sid(dev->ifindex, &if_sid);
-	if (err)
-		goto out;
+	AVC_AUDIT_DATA_INIT(&ad, NET);
+	ad.u.net.netif = ifindex;
+	ad.u.net.family = family;
+	if (selinux_parse_skb(skb, &ad, &addrp, 1, NULL) != 0)
+		return NF_DROP;
 
-	switch (isec->sclass) {
+	if (selinux_skb_peerlbl_sid(skb, family, &peer_sid) != 0)
+		return NF_DROP;
+
+	if (peerlbl_active)
+		if (selinux_inet_sys_rcv_skb(ifindex, addrp, family,
+					     peer_sid, &ad) != 0)
+			return NF_DROP;
+
+	if (secmark_active)
+		if (avc_has_perm(peer_sid, skb->secmark,
+				 SECCLASS_PACKET, PACKET__FORWARD_IN, &ad))
+			return NF_DROP;
+
+	return NF_ACCEPT;
+}
+
+static unsigned int selinux_ipv4_forward(unsigned int hooknum,
+					 struct sk_buff *skb,
+					 const struct net_device *in,
+					 const struct net_device *out,
+					 int (*okfn)(struct sk_buff *))
+{
+	return selinux_ip_forward(skb, in->ifindex, PF_INET);
+}
+
+#if defined(CONFIG_IPV6) || defined(CONFIG_IPV6_MODULE)
+static unsigned int selinux_ipv6_forward(unsigned int hooknum,
+					 struct sk_buff *skb,
+					 const struct net_device *in,
+					 const struct net_device *out,
+					 int (*okfn)(struct sk_buff *))
+{
+	return selinux_ip_forward(skb, in->ifindex, PF_INET6);
+}
+#endif	/* IPV6 */
+
+static int selinux_ip_postroute_iptables_compat(struct sock *sk,
+						int ifindex,
+						struct avc_audit_data *ad,
+						u16 family, char *addrp)
+{
+	int err;
+	struct sk_security_struct *sksec = sk->sk_security;
+	u16 sk_class;
+	u32 netif_perm, node_perm, send_perm;
+	u32 port_sid, node_sid, if_sid, sk_sid;
+
+	sk_sid = sksec->sid;
+	sk_class = sksec->sclass;
+
+	switch (sk_class) {
 	case SECCLASS_UDP_SOCKET:
 		netif_perm = NETIF__UDP_SEND;
 		node_perm = NODE__UDP_SEND;
 		send_perm = UDP_SOCKET__SEND_MSG;
 		break;
-	
 	case SECCLASS_TCP_SOCKET:
 		netif_perm = NETIF__TCP_SEND;
 		node_perm = NODE__TCP_SEND;
 		send_perm = TCP_SOCKET__SEND_MSG;
 		break;
-
 	case SECCLASS_DCCP_SOCKET:
 		netif_perm = NETIF__DCCP_SEND;
 		node_perm = NODE__DCCP_SEND;
 		send_perm = DCCP_SOCKET__SEND_MSG;
 		break;
-
 	default:
 		netif_perm = NETIF__RAWIP_SEND;
 		node_perm = NODE__RAWIP_SEND;
+		send_perm = 0;
 		break;
 	}
 
-	err = avc_has_perm(isec->sid, if_sid, SECCLASS_NETIF, netif_perm, ad);
+	err = sel_netif_sid(ifindex, &if_sid);
 	if (err)
-		goto out;
+		return err;
+	err = avc_has_perm(sk_sid, if_sid, SECCLASS_NETIF, netif_perm, ad);
+		return err;
 		
 	err = sel_netnode_sid(addrp, family, &node_sid);
 	if (err)
-		goto out;
-	
-	err = avc_has_perm(isec->sid, node_sid, SECCLASS_NODE, node_perm, ad);
+		return err;
+	err = avc_has_perm(sk_sid, node_sid, SECCLASS_NODE, node_perm, ad);
 	if (err)
-		goto out;
+		return err;
 
-	if (send_perm) {
-		u32 port_sid;
-		
-		err = security_port_sid(sk->sk_family,
-		                        sk->sk_type,
-		                        sk->sk_protocol,
-		                        ntohs(ad->u.net.dport),
-		                        &port_sid);
-		if (err)
-			goto out;
+	if (send_perm != 0)
+		return 0;
 
-		err = avc_has_perm(isec->sid, port_sid, isec->sclass,
-				   send_perm, ad);
-	}
-out:
-	return err;
+	err = security_port_sid(sk->sk_family, sk->sk_type,
+				sk->sk_protocol, ntohs(ad->u.net.dport),
+				&port_sid);
+	if (err)
+		return err;
+	return avc_has_perm(sk_sid, port_sid, sk_class, send_perm, ad);
 }
 
-static unsigned int selinux_ip_postroute_last(unsigned int hooknum,
-                                              struct sk_buff *skb,
-                                              const struct net_device *in,
-                                              const struct net_device *out,
-                                              int (*okfn)(struct sk_buff *),
-                                              u16 family)
+static unsigned int selinux_ip_postroute_compat(struct sk_buff *skb,
+						int ifindex,
+						struct avc_audit_data *ad,
+						u16 family,
+						char *addrp,
+						u8 proto)
 {
-	char *addrp;
-	int err = 0;
-	struct sock *sk;
-	struct avc_audit_data ad;
-	struct net_device *dev = (struct net_device *)out;
+	struct sock *sk = skb->sk;
 	struct sk_security_struct *sksec;
-	u8 proto;
 
-	sk = skb->sk;
-	if (!sk)
-		goto out;
-
+	if (sk == NULL)
+		return NF_ACCEPT;
 	sksec = sk->sk_security;
 
-	AVC_AUDIT_DATA_INIT(&ad, NET);
-	ad.u.net.netif = dev->ifindex;
-	ad.u.net.family = family;
+	if (selinux_compat_net) {
+		if (selinux_ip_postroute_iptables_compat(skb->sk, ifindex,
+							 ad, family, addrp))
+			return NF_DROP;
+	} else {
+		if (avc_has_perm(sksec->sid, skb->secmark,
+				 SECCLASS_PACKET, PACKET__SEND, ad))
+			return NF_DROP;
+	}
 
-	err = selinux_parse_skb(skb, &ad, &addrp, 0, &proto);
-	if (err)
-		goto out;
+	if (selinux_policycap_netpeer)
+		if (selinux_xfrm_postroute_last(sksec->sid, skb, ad, proto))
+			return NF_DROP;
 
-	if (selinux_compat_net)
-		err = selinux_ip_postroute_last_compat(sk, dev, &ad,
-						       family, addrp);
-	else
-		err = avc_has_perm(sksec->sid, skb->secmark, SECCLASS_PACKET,
-				   PACKET__SEND, &ad);
-
-	if (err)
-		goto out;
-
-	err = selinux_xfrm_postroute_last(sksec->sid, skb, &ad, proto);
-out:
-	return err ? NF_DROP : NF_ACCEPT;
+	return NF_ACCEPT;
 }
 
-static unsigned int selinux_ipv4_postroute_last(unsigned int hooknum,
-						struct sk_buff *skb,
-						const struct net_device *in,
-						const struct net_device *out,
-						int (*okfn)(struct sk_buff *))
+static unsigned int selinux_ip_postroute(struct sk_buff *skb, int ifindex,
+					 u16 family)
 {
-	return selinux_ip_postroute_last(hooknum, skb, in, out, okfn, PF_INET);
+	u32 secmark_perm;
+	u32 peer_sid;
+	struct sock *sk;
+	struct avc_audit_data ad;
+	char *addrp;
+	u8 proto;
+	u8 secmark_active;
+	u8 peerlbl_active;
+
+	AVC_AUDIT_DATA_INIT(&ad, NET);
+	ad.u.net.netif = ifindex;
+	ad.u.net.family = family;
+	if (selinux_parse_skb(skb, &ad, &addrp, 0, &proto))
+		return NF_DROP;
+
+	/* If any sort of compatibility mode is enabled then handoff processing
+	 * to the selinux_ip_postroute_compat() function to deal with the
+	 * special handling.  We do this in an attempt to keep this function
+	 * as fast and as clean as possible. */
+	if (selinux_compat_net || !selinux_policycap_netpeer)
+		return selinux_ip_postroute_compat(skb, ifindex, &ad,
+						   family, addrp, proto);
+
+	/* If skb->dst->xfrm is non-NULL then the packet is undergoing an IPsec
+	 * packet transformation so allow the packet to pass without any checks
+	 * since we'll have another chance to perform access control checks
+	 * when the packet is on it's final way out.
+	 * NOTE: there appear to be some IPv6 multicast cases where skb->dst
+	 *       is NULL, in this case go ahead and apply access control. */
+	if (skb->dst != NULL && skb->dst->xfrm != NULL)
+		return NF_ACCEPT;
+
+	secmark_active = selinux_secmark_enabled();
+	peerlbl_active = netlbl_enabled() || selinux_xfrm_enabled();
+	if (!secmark_active && !peerlbl_active)
+		return NF_ACCEPT;
+
+	/* if the packet is locally generated (skb->sk != NULL) then use the
+	 * socket's label as the peer label, otherwise the packet is being
+	 * forwarded through this system and we need to fetch the peer label
+	 * directly from the packet */
+	sk = skb->sk;
+	if (sk) {
+		struct sk_security_struct *sksec = sk->sk_security;
+		peer_sid = sksec->sid;
+		secmark_perm = PACKET__SEND;
+	} else {
+		if (selinux_skb_peerlbl_sid(skb, family, &peer_sid))
+				return NF_DROP;
+		secmark_perm = PACKET__FORWARD_OUT;
+	}
+
+	if (secmark_active)
+		if (avc_has_perm(peer_sid, skb->secmark,
+				 SECCLASS_PACKET, secmark_perm, &ad))
+			return NF_DROP;
+
+	if (peerlbl_active) {
+		u32 if_sid;
+		u32 node_sid;
+
+		if (sel_netif_sid(ifindex, &if_sid))
+			return NF_DROP;
+		if (avc_has_perm(peer_sid, if_sid,
+				 SECCLASS_NETIF, NETIF__EGRESS, &ad))
+			return NF_DROP;
+
+		if (sel_netnode_sid(addrp, family, &node_sid))
+			return NF_DROP;
+		if (avc_has_perm(peer_sid, node_sid,
+				 SECCLASS_NODE, NODE__SENDTO, &ad))
+			return NF_DROP;
+	}
+
+	return NF_ACCEPT;
+}
+
+static unsigned int selinux_ipv4_postroute(unsigned int hooknum,
+					   struct sk_buff *skb,
+					   const struct net_device *in,
+					   const struct net_device *out,
+					   int (*okfn)(struct sk_buff *))
+{
+	return selinux_ip_postroute(skb, out->ifindex, PF_INET);
 }
 
 #if defined(CONFIG_IPV6) || defined(CONFIG_IPV6_MODULE)
-
-static unsigned int selinux_ipv6_postroute_last(unsigned int hooknum,
-						struct sk_buff *skb,
-						const struct net_device *in,
-						const struct net_device *out,
-						int (*okfn)(struct sk_buff *))
+static unsigned int selinux_ipv6_postroute(unsigned int hooknum,
+					   struct sk_buff *skb,
+					   const struct net_device *in,
+					   const struct net_device *out,
+					   int (*okfn)(struct sk_buff *))
 {
-	return selinux_ip_postroute_last(hooknum, skb, in, out, okfn, PF_INET6);
+	return selinux_ip_postroute(skb, out->ifindex, PF_INET6);
 }
-
 #endif	/* IPV6 */
 
 #endif	/* CONFIG_NETFILTER */
@@ -5333,22 +5464,40 @@
 
 #if defined(CONFIG_NETFILTER)
 
-static struct nf_hook_ops selinux_ipv4_op = {
-	.hook =		selinux_ipv4_postroute_last,
-	.owner =	THIS_MODULE,
-	.pf =		PF_INET,
-	.hooknum =	NF_INET_POST_ROUTING,
-	.priority =	NF_IP_PRI_SELINUX_LAST,
+static struct nf_hook_ops selinux_ipv4_ops[] = {
+	{
+		.hook =		selinux_ipv4_postroute,
+		.owner =	THIS_MODULE,
+		.pf =		PF_INET,
+		.hooknum =	NF_INET_POST_ROUTING,
+		.priority =	NF_IP_PRI_SELINUX_LAST,
+	},
+	{
+		.hook =		selinux_ipv4_forward,
+		.owner =	THIS_MODULE,
+		.pf =		PF_INET,
+		.hooknum =	NF_INET_FORWARD,
+		.priority =	NF_IP_PRI_SELINUX_FIRST,
+	}
 };
 
 #if defined(CONFIG_IPV6) || defined(CONFIG_IPV6_MODULE)
 
-static struct nf_hook_ops selinux_ipv6_op = {
-	.hook =		selinux_ipv6_postroute_last,
-	.owner =	THIS_MODULE,
-	.pf =		PF_INET6,
-	.hooknum =	NF_INET_POST_ROUTING,
-	.priority =	NF_IP6_PRI_SELINUX_LAST,
+static struct nf_hook_ops selinux_ipv6_ops[] = {
+	{
+		.hook =		selinux_ipv6_postroute,
+		.owner =	THIS_MODULE,
+		.pf =		PF_INET6,
+		.hooknum =	NF_INET_POST_ROUTING,
+		.priority =	NF_IP6_PRI_SELINUX_LAST,
+	},
+	{
+		.hook =		selinux_ipv6_forward,
+		.owner =	THIS_MODULE,
+		.pf =		PF_INET6,
+		.hooknum =	NF_INET_FORWARD,
+		.priority =	NF_IP6_PRI_SELINUX_FIRST,
+	}
 };
 
 #endif	/* IPV6 */
@@ -5356,22 +5505,27 @@
 static int __init selinux_nf_ip_init(void)
 {
 	int err = 0;
+	u32 iter;
 
 	if (!selinux_enabled)
 		goto out;
 
 	printk(KERN_DEBUG "SELinux:  Registering netfilter hooks\n");
 
-	err = nf_register_hook(&selinux_ipv4_op);
-	if (err)
-		panic("SELinux: nf_register_hook for IPv4: error %d\n", err);
+	for (iter = 0; iter < ARRAY_SIZE(selinux_ipv4_ops); iter++) {
+		err = nf_register_hook(&selinux_ipv4_ops[iter]);
+		if (err)
+			panic("SELinux: nf_register_hook for IPv4: error %d\n",
+			      err);
+	}
 
 #if defined(CONFIG_IPV6) || defined(CONFIG_IPV6_MODULE)
-
-	err = nf_register_hook(&selinux_ipv6_op);
-	if (err)
-		panic("SELinux: nf_register_hook for IPv6: error %d\n", err);
-
+	for (iter = 0; iter < ARRAY_SIZE(selinux_ipv6_ops); iter++) {
+		err = nf_register_hook(&selinux_ipv6_ops[iter]);
+		if (err)
+			panic("SELinux: nf_register_hook for IPv6: error %d\n",
+			      err);
+	}
 #endif	/* IPV6 */
 
 out:
@@ -5383,11 +5537,15 @@
 #ifdef CONFIG_SECURITY_SELINUX_DISABLE
 static void selinux_nf_ip_exit(void)
 {
+	u32 iter;
+
 	printk(KERN_DEBUG "SELinux:  Unregistering netfilter hooks\n");
 
-	nf_unregister_hook(&selinux_ipv4_op);
+	for (iter = 0; iter < ARRAY_SIZE(selinux_ipv4_ops); iter++)
+		nf_unregister_hook(&selinux_ipv4_ops[iter]);
 #if defined(CONFIG_IPV6) || defined(CONFIG_IPV6_MODULE)
-	nf_unregister_hook(&selinux_ipv6_op);
+	for (iter = 0; iter < ARRAY_SIZE(selinux_ipv6_ops); iter++)
+		nf_unregister_hook(&selinux_ipv6_ops[iter]);
 #endif	/* IPV6 */
 }
 #endif